Flipping is basically purchasing an asset, making some improvements, holding it for some time and at last selling it for profit.
In this blog post I will talk about an amazing way to make money through flipping but in this case the asset will be a website and hence website flipping.
I have discussed every step of website flipping, from buying a website to selling it for profit in this post so stay tuned and learn!
What is Website Flipping?
There are a lot of ways to make money from a blog or a website and flipping Is also one of them.
Websites flipping is the process where you create or buy a website/ blog and invest your time in optimizing it for search engine and generating traffic and then sell it for much higher prices.
Website Flipping is a great side hustle for bloggers or even for beginners which still not known by a lot of people.
Off-course it takes time to grow a website to a certain level where it can generate profits for you but it is not rocket science.
Anyone with basic skills to write and optimize can easily do this.
Is website flipping profitable?
You can literally sell a blog for 24x to 40x its average monthly profit.
But for that you have to make your blog profitable by monetizing it with the right strategies and generate a considerable amount of traffic so that you can generate recurring revenue.
For inspiration you can have a look at the story of dale founder of blogging her way who is a six figure blogger.
According to dale she had started five successful blogs, four of which she later sold for a profit which were around travel, lifestyle, and college niches.
She was able to successfully monetize and sell all four blogs earning over $80,000 between selling the blogs and what she earned from them before she sold them.
Here’s a look at the blogs she started and sold:
- Blog 1: Sold for $4,000 profit, earned $5,600 total from blog (lifestyle)
- Blog 2: Sold for $1,800 profit, earned $2,450 total from blog (travel)
- Blog 3: Sold for $17,600 profit, earned $27,250 total from blog (college)
- Blog 4: Sold for $18,250 profit, earned $44,500 total from blog (travel)
And she also mentions that she never spent more than 5-10 hours a week the blogs she sold.
Isn’t this amazing and this is just one example, there are many other bloggers who are earning much more than this from website flipping business.
Yes, website flipping is profitable but for that you must have some knowledge and experience about SEO, content writing and monetizing your content which you will learn in process eventually.
SIGN UP TO GET EVERY UPDATE STRAIGHT TO YOUR INBOX
How to do website flipping
There are basically two ways to do website flipping
- Build From Scratch
- Buy a website
Which way should you go depends on your personal preference as both have their own pros and cons.
If you are just starting out and you want to learn things then starting from scratch can be a better option as you will have the full freedom on your website from the beginning.
On the other hand if you know the dos and don’ts of buying a website then you can easily buy a website which is already making profits and with some improvements you make it even more profitable and then sell it for a much higher price.
You can literally start a website from scratch for just under $100 but you have to invest you time to grow your website to level where you can sell if for a profit.
Whereas if want to buy an already up and running website you may have to pay 24x to 40x of the monthly profit, for example if a website is making $500/month in profit you might have to pay $12000 to $20000.
So, again it all depends on how much upfront capital you have to invest and you preference.
Further I will discuss everything in detail so that I can give you better understanding and help to make a decision.
Building from scratch
Building a website from scratch is not only cheap but also give you full freedom over your website from the beginning.
Find a niche for your website
A niche is basically the topic of your blog or website around which you will be writing content.
Your websites niche should be something which you have some knowledge about and easy to monetize so that you can create content for longer period of time and make profits.
Build a website with Bluehost
Now comes the interesting part that is to build a website.
In order to build a website you have to buy a hosting which you can get from Bluehost for less than $100.
Once you complete the purchase, Bluehost will guide you through the wordpress installation and setup process and you will be ready with your website within 30 minutes.
Installing a theme
A theme is a design that lays out what the site looks like and how it works.
Your websites theme should be mobile friendly and light weight as majority of the visitors will visit through their phone.
Also a fast loading responsive website is highly preferred by the potential buyer.
There are a lot of free themes which you can find on your dashboard’s- appearance>theme>add new, section and install it on your blog.
But still a free theme will not give you the features and customization which you will get with a premium theme.
If you have some fund left, I surely recommend you to spend it on a premium wordpress theme after-all you have saved a lot by choosing to build from scratch.
Drive traffic to your website
Traffic is the most crucial part of a website, without traffic a website is worth nothing.
To get traffic to your website you have to spend your time in writing unique and quality content, sharing on different platforms, creating backlinks.
Check out this blog post to learn about the most effective ways and strategies to drive quality traffic to your blog/website.
Monetize your website
As I have discussed that a website usually sells for 30x to 50x of the monthly profit.
To make your website profitable you need to implement the right monetization strategies. With the right monetization strategies you can generate good revenue from your website even with lesser traffic.
There are lot of ways to monetize a website like Google AdSense, affililiate links and much more.
To learn about other proven ways to monetize your website click here.
Building a website from scratch and making it profitable takes time and effort.
From making well optimized content to creating backlink everything you have do of your won.
As you know blogging is one of the best ways to make money online, it’s not necessary that you have to sell your blog, right. You can keep working on it and enjoy the recurring revenue which it makes.
Then you can implement the learning which you learnt from your first website on growing several other blog and now you can decide which one to keep and which one to sell and this is very common among the people who are into website flipping business.
Now, let’s take a look at the other way of website flipping.
Buy a website
Buying an already up and running website which is already making profit will eliminate a lot of work for you as you don’t have to set it up from the ground and don’t have to invest your time in growing your website.
You can then focus on improving the websites overall look and feel, Optimize your site for a search engine, improve its revenue so that you can sell it for profit without holding it for a longer time period.
As you know buying an authentic website can cost a significant amount of cash and it depends on the profitability of the website.
You may have to pay few thousand dollars to purchase a decent website from an online market place or a through a broker
There are a lot of Online marketplaces where you can buy and sell websites among them Flippa is the most popular one.
Some of the best website brokerages where you can buy a blog/ website-
Before buying a website make sure you do some very critical research, aka due diligence to ensure the business is functioning as you expect.
Here are a few things to consider before you buy a website for flipping.
Buying a catchy and simple domain is an important part of making money by website flipping.
Domain authority, a site with a high domain authority is considered to be a high-quality site.
Make sure the domain is not penalized, one way to check is to google the site name, and see if it ranks for its own name. If it ranks it should be good.If it doesn’t rank for it’s own name it might be hit by a penalty.
Picking a profitable niche is very important as well.
You as a buyer must make sure before buying a website that the niche is still relevant or is it a dying niche with a rather steep decline in overall interest.
Many a times the buyers only focus on the current revenue not the trends which should not be the case.
As you have to understand that the higher will be the revenue the more money you have to pay,
Whereas if you are lucky to get a website on a trendy niche with lower revenue, reason can be the owner wasn’t able to monetize it properly, it can be goldmine for you,
As with some research and right monetization strategies you can drastically improve its revenue.
So basically you need be smart about a websites niche and go for one with a long term mindset.
As you may know, Content is the king!
So make sure that a website has good quality unique content.
Of course if you are investing so much money on buying a website with the purpose of selling it for profit, your main focus must not be in making new content rather improving the already existing ones.
So you to ensure that the website you are buying do not have duplicate content which can lead to penalties and non-reliable rankings.
You can take help of some free tools like Duplicheker or Siteliner to check if any site has duplicate content.
You should always ask the seller for access to the website’s Google Analytics account, so that to make sure the majority of traffic is coming from reliable sources.
Seo, Social, email marketing are the most reliable sources of traffic for a website.
On the other hand traffic from ppc campaigns, referrals are not the best sources of traffic as they are not long lasting.
Websites with Traffic from tier 1 countries like United States, Canada, UK will be more profitable.
Make sure the website has a low bounce rate (ideally less than 90%)
Although there are a lot of ways to monetize a website and generate revenue from but when you are into website flipping business,
It is recommended to buy a website which has a more traditional ways of generating revenue like google ads and affiliate marketing.
Because if the owner is making money from the website by selling services or even from guest posts then it doesn’t mean that you might like to continue the same thing and hence the revenue source will be useless for you.
Also you will end up paying a lot more for a website that it actually worth for you.
So before you buy a website make sure you figure out the websites revenue sources and don’t end up paying for something which you are not interested about.
These are the few points which you should keep in mind while auditing a website to find out if it is really worth the money.
After you have figured out everything from finding the best marketplace to the best website, make sure you negotiate with the seller(if possible) before purchasing.
Make it better
After you purchased the perfect website for yourself, let’s make it better.
With some efforts you can drastically improve a website’s profitability which is very important,
After all, your end goal is to sell it for much higher price than you had earlier purchased it.
Here are the few things which you can do to improve the profitability of a website.
- Improve website’s design, as it is the first thing with someone notices when they visit a website. The most basic thing you can do is, if the site is using a free theme you can switch to a premium theme which make a huge difference in your website’s appearance and loading speed.
- Social media play huge role in driving traffic to a website, so make sure you smarty distribute your content across different social media platforms. Pinterest and Quora are my favourite platforms to drive quality traffic.
- Improve Seo, if you want to improve a websites ranking on search engine then seo is must. Improved seo means more traffic and more traffic means more revenue. Both onpage and offpage aspects of seo is important.
- Improve monetization strategies, you can always increase a websites profitability by monetizing it with multiple strategies like affiliate marketing, display ads, email marketing or even selling digital products and services.
Making improvements in an existing website will not require the amount of time and effort which you have to put when you are starting from scratch.
Still there are lot of things which need to be done before you can actually sell it for a profit.
Sell your website
Either you have built a website from scratch or you just bought a website, the final and the most important part is to sell.
As we have discussed earlier, It’s common for the valuation of your website to be around 24x-40x your monthly profit.
There are basically two ways to sell your website-
- Through a broker
If you are selling trough a broker like Flippa, Empire Flippers, Blogs for sale, etc you have to pay them a commission, usually between 10-20% of the sale price.
But there are quite some benefits of flipping your website through a broker
They do the work of finding a buyer for you and fielding offers.
They handle the legal side of things and facilitate the sale
On the other hand if you sell a website independently you get to keep the whole profit to yourself but you have to take care of everything from finding a buyer to all the legal procedures.
Therefore I think going with a broker is not a bad idea at all.
After you have decided the most suitable platform for listing your website here are the few things which you should follow to further maximise your chances of getting a sale.
When you are making the listing of a website make sure you provide all the necessary information to the client to make a decision.
Show them the proof of organic traffic, referral traffic, income the website generating and even your email list and try to play to your websites strengths.
Be responsive to your potential buyer’s queries if an interested buyer has taken the time out to reach out make sure you don’t disappoint him/her with unresponsiveness.
Pros and cons of Website Flipping
- Low Capital Investment
- You are your own boss
- Low Barrier to Entry
- Market Demand
- Convenience of working at home
- Significant Time Investment
- Hidden costs, such hosting and outsourcing
- Risk is involved
Final Thoughts on Website Flipping
Having a valuable skill can exceed your money making potential to a whole different level.
Developing websites and blogs and flipping them for profits is an amazing way to make money out of your regular jobs or profession and you can even build a full time business which will let to live your life on your own terms.
Website flipping can be an amazing way to make money for entrepreneurs like you and me who want to invest and create digital assets
But for that you need to have a good understanding of seo, traffic and many other things which will only come with experience and practice.
So it’s very important to take action and go through the process,
If you are a complete beginner you don’t have to invest 1000’s of dollars on a website you can start a blog for less than $100, learn from the internet implement it in your own way the results are bound to come.
In simple words I would say start small and grow big, but start today!
I hope this post helps you to have a good understanding of website flipping
Don’t forget to share your views about website flipping in the comment section.
If you liked this piece of information, consider sharing it with your friends.
Bye bye…..and keep hustling,